Amazon will launch its own online movie sales store in the US within four weeks.
A report on Advertising Age claims that consumers will be able to download digital versions of movies from the service, which seems set to offer both subscription and a la carte options.
The service will be called Amazon Digital Video, or Amazon DV.
The company has also decided not to launch its own music download service, perhaps reflecting the challenge of competing successfully in that market against iTunes.
Amazon's news emerges as speculation regarding Apple's mooted plans to launch a movie download service - possibly subscription-based - continues to mount.
Apple has two key events in its immediate diary: its Worldwide Developers Conference, which begins August 7, and its major European Apple Expo gathering between September 12-16.